ABO Wind AG (AB9) AI Stock Analysis

• Market Cap: €61.78M
• Dividend Yield: 5.42%
• Average Volume (3M): 5.06K
• Price to Earnings (P/E): 1.9
• Beta (1Y): 1.06
• Revenue Growth: 81.69%
• EPS Growth: -19.99%
• Country: DE
• Employees: 1,394
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.04
• Shares Outstanding: 9,220,893
• 10 Day Avg. Volume: 3,683
• 30 Day Avg. Volume: 5,057
• PEG Ratio: -2.03
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -45.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €6.50 ▼(-46.50% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is primarily supported by strong revenue growth and very attractive valuation (low P/E and high dividend yield), but is held back by weak operating quality signals (EBIT at zero, negative operating/free cash flow, and higher leverage) and a very bearish technical setup with the stock well below all major moving averages.

Positive Factors

Revenue growth & gross margin

Sustained near-50% top-line growth alongside a ~47.7% gross margin indicates strong project economics and scalable development activity. Over 2–6 months this supports cash generation potential from completed projects and pricing power in equipment and contractor negotiations, underpinning durable revenue expansion.

Diversified project-based business model

A multi-pronged model—developing and selling projects, delivering EPC services, and providing O&M—creates multiple monetization points and recurring service revenue. This reduces dependency on single transactions and supports steadier cash flows and client relationships across project cycles over the medium term.

Stable equity ratio and positive ROE

An equity ratio above 30% and mid-teens ROE reflect a reasonably solid capital base and shareholder returns while scaling assets. This balance supports continued project financing access and investor confidence, providing structural capacity to fund development pipelines over coming quarters.

Negative Factors

Negative operating & free cash flow

Negative OCF and FCF signal that core operations currently do not generate sufficient cash to fund growth or cover capex. Reliance on financing activity to bridge cash shortfalls raises refinancing and liquidity risk, potentially constraining project development and timely execution over the next several months.

EBIT fell to zero

An EBIT level of zero despite healthy gross margins indicates operating cost or SG&A pressures eroding operational profitability. This undermines the firm's ability to fund expansion from earnings and raises questions about sustainable margin conversion from projects over the medium term.

Elevated leverage

A debt-to-equity ratio near 1.5 increases financial vulnerability to market or interest-rate shifts and limits flexibility for new project financing. Coupled with negative cash flow, higher leverage heightens refinancing and covenant risk, pressuring strategic options and operational resilience in coming quarters.

ABO Wind AG Business Overview & Revenue Model

Company Description

ABO Energy GmbH & Co. KGaA develops renewable energy projects in Germany and internationally. The company develops, constructs, and sells wind, solar, battery storage systems, and hydrogen projects; and offers operational management and maintenance services for renewable energy plants. As of December 31, 2023, it managed 158 projects with 624 wind turbines and distributed a total of 1,702 megawatts to Germany, France, Finland, Ireland, and Poland. The company was formerly known as ABO Wind AG and changed its name to ABO Energy GmbH & Co. KGaA in July 2024. ABO Energy GmbH & Co. KGaA was incorporated in 1996 and is headquartered in Wiesbaden, Germany.

How the Company Makes Money

ABO Wind AG generates revenue through several key streams. Primarily, the company earns income from the development and sale of wind and solar energy projects. This includes revenue from project financing arrangements, where they may receive upfront payments during the development phase. Additionally, ABO Wind AG has ongoing revenue from the operation of its energy projects, as it typically retains ownership and operates the facilities, selling the generated electricity to the grid or through power purchase agreements (PPAs). The company may also engage in consultancy services related to renewable energy, providing expertise and support to other developers or investors in the sector. Strategic partnerships with local governments, energy providers, and other stakeholders enhance their project opportunities and help secure funding, further contributing to their financial performance.

ABO Wind AG Financial Statement Overview

Summary

Strong revenue growth (+48.98% in 2024) and healthy gross margin (~47.74%) support the score, but the drop of EBIT to zero and negative operating/free cash flow (€-3.3M/€-7.3M) are major risks. Leverage is elevated (debt-to-equity 1.48), tempering the otherwise stable equity ratio (32.41%).

Income Statement

ABO Wind AG has shown a robust revenue growth trajectory with a notable increase from €299.7M in 2023 to €446.4M in 2024, marking a growth rate of 48.98%. The gross profit margin for 2024 is healthy at approximately 47.74%, although the net profit margin is lower at 5.73%. Notably, EBIT has dropped to zero, indicating potential operational challenges. EBITDA margin stands at 11.95%, suggesting room for operational improvements.

Balance Sheet

The company's balance sheet reveals a substantial increase in total assets and liabilities, indicating expansion but also higher leverage. The debt-to-equity ratio is 1.48, which is relatively high, suggesting financial risk. However, the equity ratio of 32.41% indicates a stable capital structure. ROE is modest at 12.02%, reflecting steady returns for shareholders.

Cash Flow

The cash flow situation is concerning, with negative operating cash flow of €-3.3M and negative free cash flow of €-7.3M in 2024. The operating cash flow to net income ratio is negative, highlighting cash generation issues from operations. Despite this, financing activities have provided liquidity, offsetting some negative cash flow impacts.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	529.67M	446.37M	299.69M	231.66M	127.11M	149.16M
Gross Profit	150.56M	213.07M	186.01M	78.55M	43.85M	44.34M
EBITDA	56.66M	53.36M	52.51M	45.19M	24.59M	23.86M
Net Income	23.79M	25.59M	27.25M	24.59M	13.80M	13.12M
Balance Sheet
Total Assets	643.18M	656.49M	493.94M	451.26M	297.06M	249.26M
Cash, Cash Equivalents and Short-Term Investments	48.45M	85.16M	46.68M	95.85M	30.16M	62.13M
Total Debt	324.27M	314.90M	213.76M	178.49M	99.62M	72.85M
Total Liabilities	415.54M	443.72M	301.17M	281.21M	147.20M	109.15M
Stockholders Equity	227.62M	212.75M	192.75M	170.02M	149.82M	140.09M
Cash Flow
Free Cash Flow	-67.62M	-7.30M	-67.55M	-22.02M	-55.57M	38.33M
Operating Cash Flow	-62.85M	-3.32M	-63.00M	-16.77M	-52.26M	40.28M
Investing Cash Flow	-8.60M	-7.67M	1.84M	-4.86M	-4.67M	-3.97M
Financing Cash Flow	78.55M	49.05M	10.06M	84.21M	20.29M	7.01M

ABO Wind AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:AB9, the sentiment is Negative. The current price of 12.15 is above the 20-day moving average (MA) of 5.55, above the 50-day MA of 8.46, and below the 200-day MA of 28.18, indicating a bearish trend. The MACD of -1.23 indicates Negative momentum. The RSI at 31.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:AB9.

ABO Wind AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVU	76 Outperform	€345.82M	25.75	16.55%	1.34%	12.50%	10.93%
NDX1	71 Outperform	€8.29B	76.62	10.44%	―	1.27%	384.94%
TPE	70 Outperform	€555.06M	35.38	10.84%	―	-8.62%	-38.42%
AB9	64 Neutral	€61.78M	1.94	11.45%	5.42%	81.69%	-19.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BYW6	45 Neutral	€1.91B	-0.16	―	―	-11.67%	-1069.47%